Real Madrid's Ronaldo agrees to pay €18.8 million to taxmanReal Madrid's Ronaldo agrees to pay €18.8 million to taxman

The former Manchester United player was accused of four counts of tax evasion. He is said to have taken advantage of a company structure created in 2010 to hide income from the tax authorities that was generated from his image rights in Spain. The dodge involved using companies in low-tax foreign jurisdictions such as the British Virgin Islands and Ireland.

The Spanish authorities said Ronaldo declared just €11.5 million (US$13.3 million) earnings in Spain for the period 2011-2014 when his earnings actually totalled €43 million (US$49.8 million). He was also found not to have declared €28.4 million (US$32.9 million) in image rights agreed for 2015-2020, leaving €14.7 million (US$17 million) owing.

Ronaldo’s legal team had previously blamed the shortfall on a different interpretation of which revenue he was obliged to declare in Spain.

Had the case gone further without the player offering a full settlement, he could have faced a fine of as much as €28 million (US$32.4 million) and a three-and-a-half-year jail term, according to the Spanish tax office union Gestha.

In a statement to The Local issued by the Gestifute sports agency that represents him, Ronaldo insisted he had "never hidden anything, nor have I had the intention of evading taxes". But according to some reports, tax officials are calling for Ronaldo's fine to be increased and have said a deal was struck too soon.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

The former Manchester United player was accused of four counts of tax evasion. He is said to have taken advantage of a company structure created in 2010 to hide income from the tax authorities that was generated from his image rights in Spain. The dodge involved using companies in low-tax foreign jurisdictions such as the British Virgin Islands and Ireland.

The Spanish authorities said Ronaldo declared just €11.5 million (US$13.3 million) earnings in Spain for the period 2011-2014 when his earnings actually totalled €43 million (US$49.8 million). He was also found not to have declared €28.4 million (US$32.9 million) in image rights agreed for 2015-2020, leaving €14.7 million (US$17 million) owing.

Ronaldo’s legal team had previously blamed the shortfall on a different interpretation of which revenue he was obliged to declare in Spain.

Had the case gone further without the player offering a full settlement, he could have faced a fine of as much as €28 million (US$32.4 million) and a three-and-a-half-year jail term, according to the Spanish tax office union Gestha.

In a statement to The Local issued by the Gestifute sports agency that represents him, Ronaldo insisted he had "never hidden anything, nor have I had the intention of evading taxes". But according to some reports, tax officials are calling for Ronaldo's fine to be increased and have said a deal was struck too soon.

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.